IPO Details
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IPO Size
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Schedule of Patel Retail Limited IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Patel Retail Limited IPO
Patel Retail Limited IPO is an IPO of 1.02 crore shares. It consists of an offer for sale of 1.002 crore shares and a fresh issue of 90,18,000 crore shares. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.
Objective of Patel Retail Limited IPO
- Repayment/prepayment, in full or part, of certain borrowings availed of by the company.
- Funding working capital requirements of the company.
- General corporate purposes.
Patel Retail Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | 10,02,000 shares |
Fresh Issue | 90,18,000 shares |
EPS (₹) For the year ended March 31, 2023 | 42.99 |
Patel Retail Limited IPO Share offer and Subscription Details
QIBs Share Offered | Not more than 50% of the Net Issue |
NIIs Shares Offered | Not less than 15% of the Net Issue |
Retail Shares Offered | Not less than 35% of the Net Issue |
Industry Outlook
The Indian retail industry is a key driver of the Indian economy, and contributes to the Indian economy in a big way. It contributed around 10% to the country’s total GDP and employs around 8% of the total workforce. The sector is growing at a fast pace being influenced by rapid urbanization, a growing middle class, a steady increase in national wages and disposable incomes, and expanding consumer spending. Furthermore, the government’s steady efforts to improve India’s ease of doing business and to strengthen the overall digital ecosystem have facilitated the entry of foreign investors in India which today have better access to connected rural consumers than before. The sector is thus poised to grow at a projected rate of 8% between 2022-2027 to USD 1.100 Bn by 2027 and further at 13% CAGR between 2027-2032 to USD 2000 Bn, from an estimated market size of USD 750 Bn in 2022.
Company Information
The company is a retail supermarket chain operating in tier-III cities and nearby suburban areas, with focus on “value retail”, offering food, non-food (FMCG), general merchandise and apparel catering to the needs of the entire family. Incorporated in fiscal 2008, their company started its first store under the brand “Patel’s R Mart” at Ambernath, Maharashtra and ever since their operations have spread across the suburban area of Thane and Raigad district in Maharashtra.
Strengths of Patel Retail Limited IPO
Value retailing to a well-defined target consumer base.
The company’s business model is based on the concept of offering value retailing to their customers using the EDLC/EDLP strategy. The EDLC/EDLP strategy is based on offering low prices on an everyday basis by achieving low procurement and operations cost rather than as special promotions limited to certain products or to a particular day, week or any other specific period in the year. During the COVID-19 pandemic period their revenue from retail sales stood at ₹23,659.43 lakhs during the fiscal 2021 and for fiscal 2022 was ₹24,971.45 lakhs. The EDLC/EDLP strategy requires them to minimise their costs of procurement, supply and operation to achieve low prices for their customers on a daily basis.
Deep knowledge and understanding of optimal product assortment and inventory management using IT systems.
The company integrates technology to enhance their workings. The company’s IT systems are built with a wide range of data management tools specific to their business needs and support key aspects of their business, including procurement, sales and inventory control on a daily basis. Their IT systems also support their cash management, in-store systems, logistics systems, human resources and other administrative functions. Their IT systems run on ERP applications and are robust and scalable. The combination of their IT system and internal control has helped them to reduce their losses from pilferage from ₹94.73 lakhs in fiscal 2021 to ₹9.33 lakhs in fiscal 2023.
Logistics and distribution network
Their distribution and logistics network comprises one (1) Distribution Centre at Ambernath, Maharashtra for catering to their retail business. Besides, they have their own fleet of 15 trucks, which helps them transport and deliver their products in a cost and time efficient manner. Further, they also use service of third-party transport service provider for completing their last mile delivery, such as delivery to their customers door step. Their distribution centre situated at Ambernath, Maharashtra, forms the backbone of their supply chain to support their retail store network which is within a radius of 60 kms.
Risks of Patel Retail Limited IPO
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All their retail stores are concentrated in the state of Maharashtra, more particularly within the Thane and Raigad district. In the financial years 2022-23, 2021-22 and 2020-21 and the six months period ended September 30, 2023, their revenue from retail sales accounted for 26.17%, 32.59%, 28.73% and 31.17% of their revenue from operations, respectively. Any adverse developments affecting their operations in such region, could have an adverse impact on their retail business, financial condition, results of operations and cash flows.
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Some of their products are subject to seasonal variations. Lower revenues outside of the festive period of any financial year may adversely affect their business, results of operations, financial condition and cash flows.
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The occurrence of natural or man-made disasters, fires, epidemics, pandemics, acts of war, terrorist attacks, civil unrest and other events could materially and adversely affect the financial markets and their business.
Patel Retail Limited IPO Financials
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Peers Comparison
| Parameter | Patel Retail Limited | Avenue Supermarts Limited (Consolidated) | Spencers Retail Limited (Consolidated) |
|---|---|---|---|
Revenue From Operations for the year ended March 31, 2023 (₹ in crores) | 1018.5477 | Not Available | Not Available |
P/E | - | 104.10 | -6.34 |
EPS (Basic) | 6.72 | 39.22 | -17.00 |
Return on Net Worth for equity shareholders (%) | 22.79% | 14.79% | 139.83% |
NAV per share | 29.48 | 248.03 | -16.69 |
Anchor Investor Information
The Anchor Investor Bid/Offer Period shall be one Working Day prior to the Bid/Offer Opening Date.
IPO Registrar and Book Running Lead Managers
Book running lead manager:
Fedex Securities Private Limited
Registrar for the IPO is Bigshare Services Private Limited
Business Model
The company earns its revenue through the following sources:
- Providing a dependable neighbourhood supermarket that offers customers a distinctive shopping experience, comprising of a wide range of everyday value retail products sold in a modern ambience and with the feel of a retail mall.
- They earn rental income from vendors as display and listing income, shop-in-shop arrangements such as, vegetable stall, sandwich, chat and ice cream stalls.
- With respect to branded sales, they manufacture and market spices, wheat flour and refined wheat flour, pulses, staples and groceries and mango pulp under their own brands.
- They export whole spice, powder spices, pulses, staples and groceries and wheat flour in bulk form to players operating with their own brands, to those who sell these products in unbranded or loose form, they also export whole spices and powder spices under their brand ‘Indian Chaska’ and wheat flour, pulses, staples and groceries under the brand ‘Patel Fresh’.
- They undertake export and domestic trading of assorted/mix container of food products and non-food products.
Company Growth Trajectory
The company’s total revenue grew at a CAGR of 11.00% from ₹82,775.34 lakhs in fiscal 2021 to ₹1,01,980.36 lakhs in fiscal 2023. Their EBITDA grew at a CAGR of 24.86% from ₹2,773.69 Lakhs in fiscal 2021 to ₹4,323.96 lakhs in fiscal 2023. Their net profit after tax, as restated, grew at a CAGR of 19.36% from ₹1149.74 lakhs in fiscal 2021 to ₹1637.97 lakhs in fiscal 2023. In fiscal 2023, fiscal 2022 and fiscal 2021 and in the six months period ended September 30, 2023, they generated ₹66,962.58 lakhs, ₹46,767.38 lakhs, ₹53,472.70 lakhs and ₹24,567.11 lakhs, respectively, from export sales (processing plus trading sales), representing approximately 65.74%, 61.04%, 64.94% and 55.09%, respectively, of their revenue from operations.
Company Market Position
Over the years, Patel Retail Limited has emerged as a player managing one of the largest network stores in the MMR region (source: D&B Report). As on December 31, 2023 they operate and manage thirty-one (31) stores, with a Retail Business Area 28 of approx. 1,26,000 sq. ft.
Patel Retail Limited company Profit & Loss
| Parameter | FY21 | FY22 | FY23 |
|---|---|---|---|
Total Income (₹ crores) | 827.7533999 | 771.835800 | 1019.8036 |
Profit Before Tax (₹ crores) | 15.551099999 | 15.2926 | 22.2473 |
Net Profit (₹ crores) | 11.4974 | 11.3703 | 16.3797 |
EBITDA (₹ crores) | 23.3581 | 21.1012 | 41.9838 |
EPS (₹) | 33.88 | 29.85 | 42.99 |
Patel Retail limited Cash Flow Statement
| Parameter | FY21 | FY22 | FY23 |
|---|---|---|---|
Profit before tax (₹ crores) | 15.5510999 | 15.2926 | 22.2473 |
Net Cash from Operating Activities (₹ crores) | (39.2584) | 34.0071 | (5.5618) |
Net Cash from Investing Activities (₹ crores) | (13.075999) | (16.1945) | (4.8846 ) |
Net cash inflow (outflow) from financing activities (₹ crores) | 56.747 | (12.3444) | (0.0398) |
Cash and Cash Equivalents (₹ crores) | 8.326 | 13.7947 | 3.3085000 |
How To Check Allotment Status of Patel Retail Limited IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Bigshare Services Private Limited. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Patel Retail Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the Bigshare Services Private Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Patel Retail Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
How To Apply for Patel Retail Ltd IPO?
Here are the steps to apply for Patel Retail Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
Patel Retail Limited IPO FAQs
What is the Patel Retail Limited IPO?
The Patel Retail Limited IPO has an issue size of ₹10.02 crores. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Patel Retail Limited IPO?
Bigshare Services Private Limited is the registrar for this IPO.
Where can I read more about Patel Retail Limited business?
You may read more about Patel Retail Limited and its IPO from the company’s draft red herring prospectus (DRHP) here: (SEBI | Patel Retail Limited - DRHP)
